Cambridge University issues first bond

University to raise £350m through 40-year security bond a week after being handed top-notch AAA rating

Cambridge University is issuing its first ever bond, more than eight centuries after being founded.

The university is raising £350m through a 40-year security bond, which was priced in the City on Wednesday. The university is tapping the capital markets a week after being handed a top-notch AAA rating with a stable outlook by Moody’s – a better credit rating than the Bank of England or the government.

The bond will yield about 0.6% more than a British government 40-year gilt, suggesting an effective interest rate of 3.85% over the lifetime of the loan.

Professor Sir Leszek Borysiewicz, vice-chancellor, said he was “delighted by the success” of the issue. Proceeds of the sale will be used to fund “general corporate purposes”, including investing “in teaching and research at the highest international levels”.

Last month Cambridge was ranked as the second-best university in the world, behind MIT.

Cambridge University is said to hold total assets of £4bn, after swelling its coffers during its 800 anniversary celebrations in 2009.

Graeme Wearden

guardian.co.uk © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

Need a Loan? Visit Secured Loans Broker.


View full post on Free Secured Loans Advice

This entry was posted in Bad Credit Loan UK and tagged , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>